Add up your assets and liabilities to calculate your total net worth. Know exactly where you stand financially.
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It is the single most important number in personal finance because it shows your true financial position. A person earning $200,000 per year with $300,000 in debt has a lower net worth than someone earning $60,000 who has been consistently saving and investing.
The average American net worth by age (2024): Under 35: $76,000. Ages 35-44: $436,000. Ages 45-54: $833,000. Ages 55-64: $1,175,900. Ages 65-74: $1,217,700. If your net worth is below these averages, focus on increasing savings rate, paying down high-interest debt, and investing consistently. Track your net worth monthly to stay motivated and on track.